Posted on 05/10/2026 1:43:33 PM PDT by Libloather
President Trump’s top economic adviser claimed Sunday that economic growth this year could clock in north of an explosive 6%, close to triple the expectations of most mainstream forecasts.
White House Economic Council Director Kevin Hassett theorized that the recent capital-spending surge in March, which appears to be driven in part by an artificial intelligence-related investment bonanza from corporations, will turbocharge growth.
“I think we really could be looking at numbers north of 4, north of 5, north of even 6 because there’s so much capital stock growth right now,” Hassett told Fox News’ “Sunday Morning Futures” when asked about economic growth expectations for 2026.
“Once we turn those factories on, you’re going to see really growth unlike anything we have seen before.”
While the US economy has recently enjoyed considerably faster growth than most of its developed-nation peers, it’s been nowhere near 6% gross domestic product growth.
The last time the US came close to that figure was in 2021, when the pandemic rebound propelled the economy to 5.7% annual GDP growth, a feat that was then met with an inflationary hangover.
Before that, the US hadn’t topped 6% annual GDP growth since 1984.
GDP growth for the first quarter of 2026 clocked in at 2%, which topped the rest of the Group of Seven bloc of nations.
But to get to 6%, the US economy would need to grow at just under roughly 7.5% or higher during the next three quarters.
Hassett argued, “Remember that the 2 percent number that you saw for GDP growth, the reason why it was 2 percent and not 4 or 5 percent was that we imported a record number of capital goods because we’re building all these factories.”
(Excerpt) Read more at nypost.com ...
As if it wasn't the government deficit spending that caused the inflation.
Riiight.
elon musk predicts that growth will be double digit in 2027
How do you keep the 40 hour a week grunts from not voting for the democrats if they get told they’re not getting their cut of the prosperity?
I think the Trump accounts are just a part of the answer. That and all the other tax-free savings accounts like the HSA’s. No immediate gratification but a building nest egg. Those not smart enough to save will still have money for nose rings and tattoos.
“I had the head of one of the big five banks in my office yesterday going through credit card data … and credit card spending is through the roof,” Kevin Hassett told Fox Business's Maria Bartiromo.
“They're spending more on gasoline, but they're spending more on everything else too,”
GDP at 6% would also mean massive government spending as well.
Admin wants a 1.5Tril Defense budget. Admin doesn't even talk about massive cuts to government nor the promised Covid Reparations from China or Tariff dividends.
Heard that but that was before oil and fuel went sky high...along with everything else.
the two things are not mutually exclusive. not is it written that oil prices will remain high.
Cash money. interest with potential of multiple 10s of percent profit.
Did I mention these companies are wallerin’ in money?
And they’re investing it.
AI data center infrastructure is wallerin' in debt..
https://economictimes.indiatimes.com/news/international/us/data-center-debt-skyrockets-112-25-billion-issued-as-ai-boom-fuels-borrowing-frenzy/articleshow/125228221.cms#google_vignette
Data center debt skyrockets 112% — $25 billion issued as AI boom fuels borrowing frenzy
10 November, 2025
Data center debt has exploded due to the AI boom, with $25.4 billion in US secured debt issued in 2025 alone, marking a 112% increase from 2024's $12 billion. Since 2022, this issuance has grown by an astonishing 1,854%. This surge is driven by the massive capital requirements of AI infrastructure, as hyperscale data centers with advanced GPUs demand billions in upfront investment for power, cooling, and networking.
Major tech companies like Meta, Oracle, and Alphabet have borrowed heavily, issuing $75 billion in bonds and loans in just September and October 2025—more than double the sector's annual average from 2015 to 2024. Industry-wide, data center asset-backed securities and commercial mortgage-backed securities total about $49 billion outstanding. Morgan Stanley projects that AI-related data center spending will reach $2.9 trillion cumulatively from 2025 to 2028, with roughly half requiring external financing.
The pace of capital expenditures in AI data centers now stretches the limits of what company cash flows can support; in 2025 and 2026, AI capex is expected to consume up to 94% of operating cash flow minus dividends and buybacks, up from 76% in 2024, forcing companies to increasingly rely on debt markets.
We can see down the road a bit...everybody 'invested' in data centers gets hosed, OR - - - - - - - government bailout for the big guys.
The administration has categorized AI as a national security issue, teeing up the perfect rationale for a 'taxpayer-financed government bailout' - after the SHTF.
Rarely do prices fall to a post event level.
“Morgan Stanley projects that AI-related data center spending will reach $2.9 trillion cumulatively from 2025 to 2028, with roughly half requiring external financing. “
My statement remains true.
Over half the money comes from their cash flows, even in the out years.
Imho those number are baked into the vast amount of capital investment flowing into the USA. They also have a flywheel in Ai. Elon musk predicts double gnp growth in 2027
Disagree. Happens all the time
1.50@gallon is not going to happen any time soon.
Ai and robots and massive investments will push the USA into double digit growth next year
Our population growth is stagnant at best.
Our productivity growth is actually NEGATIVE when you take our static/declining work force into account.
So what exactly is being produced in the U.S. next year that's going to drive GDP growth of 7% or higher?
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